Bangalore Airport gets a newly expanded facility of DHL Express

Radhika Bansal

29 Oct 2021

DHL Express, with an investment of EUR 22 million (roughly INR 200 crore) over the next ten years, opened its new and expanded express handling airside facility within the Bangalore International Airport on Thursday, October 28.

The facility, which is four times larger than the previous one and spans 112,000 square feet, can handle over 90,000 tonnes of cargo per year when fully operational, according to the company.

The increased capacity at the Bengaluru Gateway allows DHL Express to provide 12 to 24 hour faster connection and delivery of imported goods across India, as well as a 60-minute reduction in the daily cut-off time for shipment pick-up, according to the company.

DHL Boeing 767 at Bangalore Airport (Image Courtesy - Bangalore Aviation)

Using 11 DHL-operated intercontinental freighters, 30 international commercial airlines and 70 domestic flights weekly, the Bengaluru Gateway at present connects both South and West India to over 220 countries and territories through DHL’s unrivalled global network.

The Gateway’s primary export trade lanes are North America and Europe while the Asia Pacific and Europe are the key import trade lanes for Bengaluru.

"As one of the world’s fastest-growing economies, India remains a critical node of the global DHL network. The Bengaluru Gateway is part of our EUR 750 million investment to bolster our infrastructure in Asia Pacific and enhance connectivity for countries and businesses.With strong international imports and exports driving the increasing cargo volume in Bengaluru, the new facility supports Bengaluru’s strategy to provide capacity of one million tons at its airport in the next few years."Ken Lee, CEO, DHL Express, Asia Pacific

An additional six dedicated intercontinental freighters will join the current fleet by November 2021, bringing the total number of aircraft operating through Bengaluru to 17, DHL Express said.

The expanded Gateway will provide greater capacity to support industries such as electronics, automotive, life sciences and medical, and fashion in Bengaluru, it said.

Coupled with the enhanced infrastructure and additional dedicated DHL flights, these trade lanes will greatly benefit from the increased capacity and speed, according to the company.

"Ten years ago, DHL landed its first freighter in Bengaluru and opened its Gateway at the Kempegowda International Airport. Since then, it has seen the international volumes multiply significantly.Our EUR 22 million investment commitment is testament to the growth potential we see in this market. To maintain our market-leading position, we will continually invest ahead of the curve in our infrastructure, technology and people to support the country’s economic growth and help Indian exporters and importers expand their business."RS Subramanian, SVP and Managing Director, DHL Express India

Deutsche Post AG, also known as Deutsche Post DHL Group, is a major postal and communications service provider headquartered in Bonn, Germany. The group is separated into two main brands - DHL operates as a logistics company while Deutsche Post handles communication services. 

DHL Aviation is a division of DHL Express and refers to the group of airlines that DHL Express either owns, co-owns or charters for the provision of global air cargo services. Also located in Bonn, DHL Aviation and its affiliates operate an extensive global network of air cargo services, with each airline providing service by specific, sometimes multiple regions.

Cover Image - Construction Business News Middle East

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SpiceJet reduces domestic flights by 31%, while Vistara increases flights by 22% for winter schedule

Radhika Bansal

29 Oct 2021

SpiceJet has decreased its domestic services by 31% to 2,995 weekly flights in the upcoming winter schedule as compared to 4,316 weekly flights that it got approved for the winter schedule of 2019, the aviation regulator DGCA said on Thursday, October 28.

Recently, SpiceJet launched 28 new domestic flights across the country from October 31 onwards. The airline will be deploying its Boeing 737 and Q400 aircraft on these routes.

Meanwhile, Vistara, another private carrier, has increased its domestic services by 22% to 1,675 weekly flights as compared to 1,376 weekly flights for the 2019 winter schedule, the regulator added.

(Image Courtesy - Hindu Business Line)

The winter schedule begins on October 31 of a year and ends on March 26 next year. Overall, the Directorate General of Civil Aviation (DGCA) has approved 22,287 weekly domestic flights of Indian carriers for the winter schedule of 2021.

The number is 4% less than the 21,307 weekly flights approved for the winter schedule of 2019. From May 25, 2020, to October 18, 2021, Indian carriers operated domestic flights with restrictions due to the COVID-19 pandemic.

This winter, flights will be operated from 108 airports, including two new ones, Sindhudurg and Kushinagar.

From May 25, 2020, to October 18, 2021, Indian carriers operated domestic flights with restrictions due to the COVID-19 pandemic. The restrictions were lifted by the Civil Aviation Ministry on October 18.

"Accordingly, winter schedule 2021 has been approved without capacity restrictions as submitted by the scheduled domestic airlines,” the DGCA said.

As per its data, Air India — which was sold to the Tata Group earlier this month — would operate 9% fewer weekly domestic flights in the upcoming winter schedule as compared to that of 2019.

Go First — previously known as GoAir — would operate 2,290 weekly domestic flights in the winter schedule of 2021 as compared to 2,308 weekly domestic services in the winter schedule of 2019, as per the data shared by the DGCA.

A total of 1,393 domestic services of AirAsia India have been approved for the winter schedule of 2021, the data said, as compared to 1,345 domestic flights that were approved for the same period in 2019.

With little change, India’s largest carrier IndiGo will operate 10,243 weekly domestic services in the upcoming winter schedule as compared to 10,310 weekly flights it got approved for the same period in 2019.

Regional carrier Star Air will operate 137 weekly domestic flights in the winter schedule of 2021 as compared to 62 weekly services for the same period in 2019, the data mentioned.

The new schedule has been announced when air traffic is on rising. According to DGCA (Directorate General of Civil Aviation) data, over 5.31 crore people travelled on domestic airlines in the first nine months of calendar 2021, this is over 20 per cent higher than the number of air travellers during the corresponding period of last fiscal.

The validity of domestic fare bands now applies to flights booked within 15 days of travel. Airlines can charge fares based on market forces of demand and supply for tickets sold for travel beyond 15 days of travel.

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Vistara to start Delhi - Newark via London this winter

Radhika Bansal

29 Oct 2021

Vistara's entry into the United States may begin with a single-stop flight. Vistara has secured slots to connect New Delhi and Newark via London Gatwick, according to a recent report. If the plan is approved, the airline will use its Boeing 787-9 Dreamliner, which is capable of nonstop flights from India to the United States.

As noted by PaxEx.Aero, Vistara is looking into a possible route between Delhi and Newark via London. The report cites data from the latest regulatory filings for slots at London’s Gatwick Airport, which indicates a Delhi-Gatwick-Newark route for Vistara.

The all-inclusive This route can be flown three times a week in each direction if an Indian carrier has enough slots. Even if Vistara has secured the slots to operate such a flight, it is unclear whether it will go ahead with the plan. Any speculation would be put to rest only if the carrier made an official announcement.

(Image Courtesy - Vistara)

Last winter, Vistara had slots at Gatwick but was unable to use them. However, why would the airline consider flying to the United States via London? It appears to be a fifth freedom flight on the surface, but that may not be the case.

For an ultra-long-haul flight to the United States, Vistara's 787-9 planes have limited crew rest facilities. As a result, Vistara would need to make a stopover city (in this case, London) to swap crews for the onward flight to Newark.

It will be interesting to see how this route performs if the carrier decides to go ahead with it, especially since there are multiple non-stop flight options between India and the United States. Air India, which operates the most flights between the two countries, recently increased its service to the United States.

United Airlines, too, offers nonstop flights from Delhi to Newark, Chicago, and San Francisco, and American Airlines will soon join the fray.

(Image Courtesy - Moneycontrol)

Vistara is dedicated to long-haul travel. Since the outbreak, the airline has expanded its network to include several international destinations, including London, Tokyo, Frankfurt, Dubai, and Male. Paris will be added to the list soon, with flights starting in November.

The airline is also eager to send its Dreamliners to the United States. Vistara applied for a foreign air carrier permit to fly to the United States with the US Department of Transportation (DOT) in April of this year. The DOT gave Vistara tentative approval to fly into the country in June, and the DOT gave the airline official approval for its US operations in August.

Initially, the carrier wanted to start US flights by September, but Covid-induced restrictions and border closures delayed the plan. While no official announcement has been made by the airline regarding its US flights, it’ll be good to have one more airline catering to the massive demand for flights between the two countries.

Gatwick Airport, London (Image Courtesy - BBC News)

Vistara had applied for approval to start services to the USA, which they recently got approval for. Now, with permissions granted in the USA, Vistara’s challenge is to activate this route. If they can get in, this route could become a hit, given the sparse non-stop capacity between India and the USA right now, with only Air India and United operating flights for the moment.

Vistara has now made some creative changes to their route plan, intending to use the London Gatwick slots to launch flights to the United States. According to the ACL, Vistara, the slot coordination authority for London Gatwick, in addition to London Heathrow, has been granted 126 slots for arrivals and departures from Delhi and New York Newark.

This is most likely for a 299-seat Boeing 787-9, which Vistara uses on 9-10 hour routes.

It currently lacks a plane capable of making a non-stop flight to the United States due to its decision not to install crew rests on its first six aircraft. With their current two 787-9 aircraft, they can still operate the flights.

However, they will need to assign some seats for crew/pilot rest in that case.

The routing on DEL-LGW-EWR is 7667 miles, which is longer than the direct heading of 7324 miles between the two stations. This development was first picked up by Paxex.Aero.

Liberty International Airport, Newark (Image Courtesy - Business Insider)

Vistara has six 787-9 on order, out of which two have been already delivered to the airline. There are another two being tested in the USA right now. However, given an FAA order on quality issues with the 787 aircraft, Boeing is under embargo for delivering any further 787 jets to customers. Vistara has also not added to their 787 order at the moment, as the four options have not yet been confirmed.

Now, Vistara has held the slots at London Gatwick for a long while, so this could just be some groundwork to no avail, or something really in the works.

Vistara has moved forward to find a way to get to Newark without non-stop 787-9 aircraft, which they don’t have for now. This way is going to be one-stop via London Gatwick. Whether Vistara moves forward on launching this route remains to be seen.

Cover Image - Jet Photos

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Airlines at risk of failing if carbon emissions not reduced

Radhika Bansal

28 Oct 2021

Some airlines risk failure if they do not cut carbon emissions quicker in the next three to five years due to a mismatch between short-term corporate travel targets and the airline industry's 2050 net-zero target, an industry report said.

Airlines are also at rising risk of shareholder activism at a time when major fund managers such as BlackRock Inc, Vanguard Group Inc and State Street Corp have publicly expressed concerns about climate change, the report from CAPA Centre for Aviation and Envest Global released on Wednesday, October 27 said.

(Image Courtesy - Climate Action Moreland)

"The pressure from customers and governments and investors is going to probably demand an acceleration of the journey to net zero, which is clearly going to put pressure on airlines," said David Wills, advisory executive director at Australian carbon reduction strategy firm Envest.

"The conditions are right for airlines who get it wrong to find themselves in a potential failure situation," he added.

Several companies, such as HSBC Holdings plc, Zurich Insurance Group Ltd, Bain & Company and S&P Global Inc, have already announced plans to quickly cut business travel emissions by as much as 70%.

(Image Courtesy - Penn Today)

Qantas Airways Chief Executive Alan Joyce said last week that his airline was developing a 2030 emissions target.

"Our view is that smart airlines will pivot to reinforcing not only 2050 but enhancing their definitive views on 2030 because they will be looking to engage with their corporate customers more," said Brett Mitsch, Envest's executive director of investment.

The CAPA/Envest report found the top quartile of 52 global airlines examined emitted an average of 30% less per passenger kilometre flown in 2019 than those in the bottom quartile.

(Image Courtesy - Inside Climate News)

Low-cost carriers like Wizz Air, Ryanair and AirAsia with newer fleets and higher load factors were among the best performers, while the worst included Turkish Airlines, Japan Airlines Co Ltd (JAL) and British Airways.

The report said JAL was able to break even with a carbon price of more than $160 per tonne based on 2019 earnings, whereas many airlines with lower profit margins would have reported a loss at a carbon price of $30 per tonne.

(With Inputs from Reuters)

Cover Image - Travel Daily

Also Read - CORSIA – Aviation Carbon Tax

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All ministries instructed to pay Air India debts immediately

Radhika Bansal

28 Oct 2021

On Wednesday, October 27, the government directed all ministries and departments to immediately clear Air India's debts and to purchase tickets only in cash from now on.

The government decided earlier this month to sell Air India to Talace Pvt Ltd, a subsidiary of the Tata group's holding company, for INR 18,000 crore.

In a 2009 order, the Finance Ministry's Department of Expenditure stated that officials may only travel by Air India in cases of air travel (both domestic and international), including LTC, where the Government of India bears the cost of the air passage.

The Expenditure Department said the process of disinvestment of Air India and Air India Express is ongoing, and the airline has stopped extending credit facilities on account of air tickets.

"Therefore, all Ministries/Departments are directed to clear Air India dues immediately. Air tickets from Air India may be purchased in cash till further instructions," the department said in an office memorandum.

It also directed the ministries/departments to alert its subordinate offices/institutes under its administrative control for compliance to this office order.

On October 25, the government signed the share purchase agreement with Tata Sons for the sale of national carrier Air India. Tatas will now seek various regulatory clearances before the handover of the airline by December end.

The deal entails a cash payment of INR 2,700 crore and the assumption of the airline's INR 15,300 crore debt.

The government is selling its entire stake in Air India and Air India Express, as well as a 50% stake in the ground-handling company AISATS.

Tatas outbid a consortium led by SpiceJet promoter Ajay Singh for INR 15,100 crore and the government's reserve price of INR 12,906 crore for the sale of its entire stake in the loss-making airline.

Air India had a total debt of INR 61,562 crore as of August 31. Before handing over the loss-making airline to the Tata Group, 75% of the debt, or INR 46,262 crore, will be transferred to a special purpose vehicle called AIAHL.

In July 2009, the Department of Expenditure had made mandated that all government officials will travel by Air India for which the Centre was bearing the cost. This was mandatory for all domestic and international flights, including the leave travel concession journeys.

Earlier, information released by Air India in response to a Right to Information application had shown that the Union government owed Air India INR 33.69 crore as of July 27, 2021.

Recently, the government signed the share purchase agreement with Tata Sons, for divestment of the government’s stake and management control in the national carrier, marking the first privatisation in nearly two decades.

Of the 141 Air India aircraft that Tatas would get, 42 are leased planes while the remaining 99 are owned.

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Krishi Udan 2.0 launched to strengthen agri-product transport

Radhika Bansal

28 Oct 2021

The Ministry of Civil Aviation launched the Krishi Udan 2.0 scheme on Wednesday, October 27. Under the scheme, cargo-related infrastructure will be built in airports in the northeast, hilly, and tribal regions to help farmers transport agricultural products.

The Krishi Udan scheme, which was launched by the Centre in September 2020, waived airport charges such as parking and terminal navigational landing charges for air cargo operators if agricultural cargo accounts for more than half of the total chargeable weight carried at select Indian airports.

The Centre, under Krishi Udan 2.0, has stated that a full waiver of airport charges would be granted at select airports even if the agricultural cargo is less than 50% of the total chargeable weight carried.

(Image Courtesy - Agriculture Post)

The Centre has stated that under Krishi Udan 2.0, it will facilitate the development of the hub and spoke model in India and create cargo terminals at airports in phases.

Within the next five years, cargo terminals will be built at airports in Agartala, Srinagar, Dibrugarh, Dimapur, Hubbali, Imphal, Jorhat, Lilabari, Lucknow, Silchar, Tezpur, Tirupati, and Tuticorin.

To aid the transportation of agricultural produce, cargo terminals will be built at airports in Ahmedabad, Bhavnagar, Jharsuguda, Kozhikode, Mysore, Puducherry, Rajkot, and Vijayawada in 2022-23, according to the Centre.

Under Krishi UDAN 2.0 MoCA will provide a full waiver of landing, parking, Terminal Navigation and Landing Charges and Route Navigation Facilities Charges for domestic airlines.

https://twitter.com/JM_Scindia/status/1453348542664216576

Terminals will be built in Leh, Srinagar, Nagpur, Nashik, Ranchi Bagdogra, Raipur, and Guwahati, according to the ministry. The scheme will cover 53 airports, the majority of which will be operated by the Airports Authority of India (AAI).

In addition, eight domestic and international trade routes will be established as part of the scheme, according to Scindia.

Amritsar-Dubai for baby corn, Darbhanga and the rest of India for lychees, and Sikkim and the rest of India for organic produce are among the routes.

The government will also work towards setting up a trade route between Chennai, Vizag and Kolkata and East Asian countries to transport seafood. Other routes include Agartala-Delhi-Dubai for Pineapple, Dibrugarh-Delhi-Dubai for Mandarin Oranges and Guwahati to Hong Kong for pulses, fruits and vegetables.

(Image Courtesy - India Today)

Furthermore, under Krishi Udan 2.0, the government would encourage states to lower the sales tax on aviation turbine fuel used in freighter aircraft and passenger aircraft solely for cargo transportation to 1%.

Various government departments and regulatory bodies will collaborate with the civil aviation ministry under the newly launched scheme to provide incentives and concessions to freight forwarders, airlines, and other stakeholders to transport more agricultural products.

Civil Aviation Minister Jyotiraditya Scindia, while launching Krishi Udan 2.0 in the national capital, said that the scheme aims to channelise the immense potential of Indian agriculture with the logistical help of civil aviation towards the goal of doubling farmers income and making them self-reliant.

(Image Courtesy - Krishi Jagran)

"The comprehensive policy programme will also help alleviate wastage of farm produce, increase the value of farm produce and link them to global markets, thereby making Indian agriculture more sustainable and profitable," he mentioned.

Under Krishi Udan 2.0, an online platform called e-Kushal would be developed to make information about agricultural produce transportation more accessible to all stakeholders.

Scindia stated that the ministry will continue to work on fine-tuning the scheme's rules and urged the transportation industry to report any bottlenecks in the transport of goods across the country.

The scheme was first announced by Finance Minister Nirmala Sitharaman during her Budget speech on February 1, 2020. Its goal is to transport agricultural products to national and international destinations, thereby increasing value realisation, particularly in the Northeast and tribal areas.

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